LIVE: BSE Sensex plunges 444.65 pts at 27062.65, NSE Nifty sinks 139.55 pts at 8185.70

The benchmark BSE Sensex tumbled over 444.65 points in late morning trade today as participants locked in gains after two sessions of gains and ahead of IIP and inflation data to be released later in the day.

The 2-day pullback rally fizzled out as the benchmark S&P BSE Sensex today slumped 444 points to quote at 27062.65 in late-morning deals following weakness in global stocks amid profit-booking by wary operators ahead of the IIP and CPI data to be released later in the day.

Selling was noticed across the board as all 12 sectoral indices were quoting down between 0.76 per cent and 2.61 per cent, with banking, capital goods, oil & gas, metal, power, realty and auto sectors leading the slide.

Overall, 27 out of the 30 Sensex scrips were trading weak while only Hero MotoCorp, Dr Reddy’s Lab and Coal India showed a firm trend.

Overall, 27 out of the 30 Sensex scrips were trading weak while only Hero MotoCorp, Dr Reddy’s Lab and Coal India showed a firm trend.

Market participants are waiting for the announcement of macro economic data on inflation based on the consumer price index (CPI) for April 2015 and the Index of Industrial Production (IIP) data for March 2015.

The 30-share index was trading lower by 444.65 points, or 1.62 per cent, at 27062.65. The gauge had rallied 908.19 points in the previous two sessions on the back of the government’s move to dispel overseas investors’ taxation worries and expectations of an RBI rate cut.

Similarly, the Nifty slipped below the 8,300-mark by plunging 139.55 points, or 1.68 per cent, to 8185.70.

A weak trend at other Asian markets, weighed down by uncertainty over the Greek debt deal, too, dampened trading sentiment here, they said.

Key indices from Hong Kong, Japan, Singapore and South Korea were trading lower while those from China and Taiwan were quoting better.

Reuters- Asian stocks were mostly lower and the euro sagged on Tuesday as barely perctible progress on talks between debt-strapped Greece and its creditors kept investors edgy.

Spreadbetters expected jitters over Greece to continue weighing on Europe, forecasting a slightly lower open for Britain’s FTSE, Germany’s DAX and France’s CAC .

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2 percent. Decliners included shares in South Korea, Hong Kong, Malaysia and Thailand, while Chinese equities bucked the trend and rose modestly.

In a closely-watched Eurogroup meeting on Monday, euro zone finance ministers welcomed progress in negotiations between Greece and its creditors but said more work is needed to close a cash-for-reform deal.

“It acknowledged progress, but any further development will depend on a positive conclusion to a review of the current program. In other words, the story remains unchanged,” Richard Cochinos, head of Americas G10 FX strategy at Citi, wrote in a note to clients.

While Greece said on Monday it repaid about 750 million euros to the International Monetary Fund, the absence of a clear breakthrough in negotiations made it an anxious wait for markets worried that Athens would eventually run out of cash and default on its debts.

“Barring an unforeseen shock, Greece should be able to carry on negotiations into June, but cash positions are low. Based on our expectations debts will have significant trouble being met beyond mid-June,” Cochinos at Citi said.

Japan’s Nikkei lost 0.3 percent, with volatility in the bond markets of many developed countries also a cause of concern. A recent sharp spike in euro zone bond yields from record lows have shaken other key debt markets such as U.S. Treasuries, which saw the 30-year bond yield climb to a six-month high.

Elevated U.S. yields mean higher borrowing costs that could hurt shares not on just Wall Street but in many other markets as well.

“We are potentially at a crossroads. If U.S. monetary policy begins to tighten, U.S. equity markets may have trouble rallying, which could translate to some caution in other equity markets including Japan,” said Stefan Worrall, director of equity at Credit Suisse in Tokyo.

China was another factor on investors’ radar after Beijing cut interest rates for the third time in six months on Sunday. While the latest easing has generally been welcomed by global investors, concerns remain about the outlook for the economy as it heads for its weakest annual growth in 25 years.

Wall Street shares slipped after the Eurogroup meeting, with the Dow and S&P 500 each shedding 0.5 percent.

In currencies, the euro was down 0.2 percent at $1.1183 . The common currency surged to a two-month high of $1.1392 on Thursday when markets were focused on improving prospects for the European economy and surging euro zone bond yields.

The dollar was little changed at 120.19 yen after climbing modestly overnight as U.S. Treasury yields rose ahead of $64 billion in new debt supply hitting the market this week.

The New Zealand dollar hovered near a two-month low of $0.7328. Increasing speculation that the country’s central bank would eventually cut rates has recently pummelled the kiwi.

In commodities, U.S. crude, which hit a five-month high of $62.58 last week on a weakening in the dollar, lost 2 cents to $59.23 a barrel on concerns on overabundant supply. Oil could suffer more losses if the Organisation of the Petroleum Exporting Countries monthly report due later in the day shows a rise in production.